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States Look At Internet Sales Tax

As states across the country struggle with budget deficits in the billions, many officials are beginning to eye sales taxes on online shopping. Much of this season´s holiday shopping was done online and not all of the money spent contributed to state taxes. In California alone, collecting such taxes could yield at least $200 million yearly.

Under a U.S. Supreme Court decision, a state cannot force a business to collect sales taxes unless it has a physical presence in that state – such as a store. There is work underway to change this.

Utah Tax Commissioner R. Bruce Johnson hopes within a year that at least ten states will create a simple, single statewide sales tax rate. He has tried to enlist Wyoming, North Dakota, Ohio, Michigan, Florida and North Carolina in his campaign.